EU makes deeper economic ties with China a priority – WSJ

Anil Panchal FXStreet

As per the latest news report from the Wall Street Journal, the new European Council President Charles Michel wants to provide a more unified approach to Beijing while also trying to avoid the US push towards not doing so.

Key quotes

Europe would continue to discuss its approach to China with Washington, it wouldn’t allow its ties, which were friendly but have turned warier in recent years, to be dictated by the US.

EU officials have struck a wary note about China in recent months, labeling the Asian giant a systemic rival in a strategic paper this spring. There is nervousness about China’s investment in major infrastructure in some parts of Europe and concern about Beijing playing on divisions in the bloc over ties with China.

The bloc has also faced strong pressure from the Trump administration to reject Chinese investment in Europe’s 5G telecommunications network, to take a more robust approach to Beijing’s military assertiveness in the South China Sea and to challenge China’s trade practices.

Yet as the Trump administration pursues an America First agenda while China and Russia show a willingness to deploy hard power, there is a growing push for the EU to enhance its geopolitical autonomy and common military capabilities.

FX implications

Even if the news suggests a likely political rift between the European Union and the US, its immediate market impact has been muted as no actual performances have been delivered. The US 10-year Treasury yields stay close to 1.92% whereas USD/JPY also holds on to the previous gains to 109.36.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.